Bhavish Aggarwal Sells Two Percent Ola Electric Stake
The founder and CEO of Ola Electric, Bhavish Aggarwal, has divested a portion of his equity stake in the electric vehicle manufacturing company through a large-scale transaction. This decision was made to address promoter-level financial obligations and lift all encumbrances on shares.
According to reports filed with the stock exchange, Aggarwal recently divested 26.25 million shares, representing approximately two percent of his total ownership in Ola Electric, at a per-share price of Rs 34.99.
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The value of this transaction was estimated to be around Rs 92 crore. As a result of this sale, Aggarwal's stake in Ola Electric has decreased from 30.02 percent to approximately 29.4 percent.
The company announced that the sale signifies a singular opportunity to convert a small portion of the founder's personal shares into capital, which will be utilized to completely settle a Rs 260 crore loan at the promoter level.
Following the repayment, it is anticipated that all shares that were previously pledged will be unrestricted, therefore mitigating a perceived risk and reducing volatility for stakeholders. At the beginning of the month, Aggarwal increased his pledged stake by 3.04 percent, bringing his total pledged holding to 13.3 percent before the sale.
Ola Electric indicated that the repayment of the loan would lead to the release of the entire pledged portion, highlighting the founder's dedication to operating without leverage at the promoter level.
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The divestiture occurred during a difficult period for Ola Electric. In November, the company dropped to the fourth position in India's electric two-wheeler market, experiencing a decrease in market share to 7.19 percent.
The number of vehicle registrations declined significantly to 8,254 units, representing a decrease of 50 percent from the previous month and a noteworthy shift from its dominant market position a year ago.
Ola Electric experienced a decrease in revenue of 46 percent to Rs 660 crore in the second quarter of FY26, accompanied by an expansion of losses to Rs 418 crore. The company's stock has faced significant pressure, reaching an unprecedented low earlier this month following a depreciation of approximately 70 percent in value over the last year.
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On December 16, Ola Electric's stock was priced at Rs 34.20, giving the company a valuation of approximately Rs 15,085 crore, which is a decrease from its peak stock price of Rs 100.40 achieved in December of the previous year.